Zenefits Woos Human Resources With App Store Approach

Zenefits CEO David Sacks recently rolled out his company's new Z2 platform.

Zenefits wants to be the iPhone of human resources.

At its Z2 user conference in San Francisco, the HR and benefits technology startup announced Oct. 18 that it will launch a revamped user interface and offer the first online “app store” for HR services including recruiting, expenses and productivity.

While continuing to offer its core solutions in-house, the new Zenefits platform will allow users to download additional applications that can access employee information directly through Zenefits.

“We've made integration as simple as installing an app on your iPhone,” said CEO David Sacks.

The platform will initially include apps from 17 partners including Salesforce, Intuit and Google, but Zenefits anticipates more third-party companies using its developer platform to create hundreds of new offerings.

Other new features include a new online benefits shopping experience that allows employers to choose from over 10,000 preloaded plans and compare provider maps. Zenefits will also release a new payroll feature in California, with other states to follow.

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Also new is the HR adviser app, a paid service that provides small businesses with a content library and access to expert advice to help guide decision-making.

Zenefits also will release an updated iOS mobile app and introduce its first Android one.

These improvements take place as the company nears the end of a turbulent year. After experiencing staggering growth in just three years - Zenefits has raised $584 million in funding - reports surfaced in February that the cloud-based health insurance and HR software provider failed to abide by licensing requirements for its brokers.

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Zenefits recently settled with Washington state and Tennessee over these claims, paying $100,000 in fines to continue operating in those states. Since taking the top post from ousted founder Parker Conrad in February, Sacks has also laid off over 350 employees and changed the company's ownership structure.

Competitors are also closing in on the all-in-one HR market. Gusto, among others, provides similar cloud-based solutions and just reached 40,000 customers, twice as many as Zenefits.

Nidhi Madhavan is a Workforce intern. Comment below or email editors@workforce.com.

Tags: David Sacks, Gusto, Z2, Zenefits

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